Fidelity vs. Vanguard: Which Brand Wins for Dividend Investors?

Vanguard and Fidelity are 2 of the biggest names successful the concern world. Together, they negociate trillions of dollars successful assets and are apical investing destinations for astir immoderate fiscal goal.

For those seeking income generation, some issuers connection prime exchange-traded funds (ETFs), though somewhat constricted dividend ETFs. In presumption of dividend income strategies, some Vanguard and Fidelity connection respective comparatively modular options, but amazingly small that would beryllium considered a robust oregon unsocial approach.

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Before diving deeper into which of the 2 is the amended dividend ETF issuer, let's bash a speedy rundown of the lineup that each offers.

The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) has a straightforward strategy. It targets companies with a streak of consecutive yearly dividend maturation covering astatine slightest 10 years, portion eliminating the apical 25% of yields from consideration.

The Vanguard International Dividend Appreciation ETF (NASDAQ: VIGI) is the planetary mentation of the money above. The lone large quality is that this scale requires lone a seven-year way grounds of yearly dividend growth.

The Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is simply a beauteous generic high-yield portfolio. It starts with a ample beingness of U.S. dividend-paying stocks, calculates the indicated output for each, and simply grabs the apical fractional of each yields.

The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) is the planetary mentation of the supra ETF.

The Vanguard Wellington Dividend Growth Active ETF (NYSEMKT: VDIG) is astatine slightest unsocial successful that it's actively managed and targets high-quality companies that person shown an quality and a willingness to turn their dividends implicit time.

The Fidelity High Dividend ETF (NYSEMKT: FDVV) is the best-known of Fidelity's dividend funds. Its strategy is heavy tilted toward yield, but it besides considers the dividend maturation complaint and payout ratio. This gives it a spot of a multi-factor twist.

The Fidelity International High Dividend ETF (NYSEMKT: FIDI) does the aforesaid happening but for non-U.S. stocks.

The Fidelity Dividend ETF for Rising Rates (NYSEMKT: FDRR) is possibly the astir antithetic of the bunch. It gives information to the aforesaid 3 factors that the high-yield ETFs do, but besides looks astatine the stock's correlation to 10-year Treasury yields. Those with a higher correlation get preference.